Record low supply, high prices for new homes in the GTA

GREATER TORONTO, May 24, 2016 /CNW/ - April was another record-breaking month for the GTA's new homes market. Low-rise inventory levels dropped to an all-time low while prices hit new highs, the Building Industry and Land Development Association (BILD) announced today.

The number of new detached, semi-detached and townhomes available for purchase in builders' inventory throughout the entire GTA was only 2,751 on April 30, a record low. According to Altus Group, BILD's official source for new-home market intelligence, a year ago there were almost twice as many homes available, 5,171.  

The average price of new low-rise homes in the GTA climbed to $864,181, an increase of 11 per cent in 12 months. In April 2015 the average price was $775,419. The price of new detached homes increased to $1,059,263. In the 30 days since exceeding the $1 million mark, the average price of new single family homes have grown by $13,604.

"Ongoing constraint of serviced developable land is limiting the supply of new low-rise homes brought to market, and the result continues to be dramatic increases in low-rise prices across the region," said BILD President and CEO Bryan Tuckey.

Sales of new low-rise homes were down in April with 2,324 sold, a 14 per cent decline from the previous year. Two-thirds of the sales were recorded in Peel and York regions. Detached homes represented approximately half of all low-rise homes sold.

"Demand for low-rise homes continues to exceed supply," Tuckey said. "If monthly low-rise sales are an indication of consumer demand, the GTA has less than two months of supply in remaining inventory, and inventory is declining every month."

In the GTA, more than three-quarter of the new homes available for purchase are high-rise homes. On April 30, 87 per cent of all new homes available for purchase in builders' inventory across the GTA were condos. There were 17,698 condos available, a 10 per cent decrease from last year.

Sales of high-rise homes were also down slightly in April. There were 1,640 units sold, about nine per cent fewer from last year and 10 per cent below the long-term average.

Meanwhile the average price of a high-rise home increased by three per cent to $461,281. On a price-per-square-foot basis, the high-rise market showed a five per cent increase to $583.

A detailed table of April new-home sales broken down by region over the past three years is available below.

April New-Home Sales by Municipality:

April '16	Low Rise			High Rise			Total
Region	2014	2015	2016	2014	2015	2016	2014	2015	2016
Durham	285	438	351	40	16	42	325	454	393
Halton	239	476	348	91	124	41	330	600	389
Peel	494	822	911	44	113	147	538	935	1,058
Toronto	176	115	115	1,247	1,255	1,143	1,423	1,370	1,258
York	697	866	599	127	292	267	824	1,158	866
GTA	1,891	2,717	2,324	1,549	1,800	1,640	3,440	4,517	3,964
Jan-April	5,899	7,045	7,238	6,381	6,229	6,499	12,280	13,274	13,737

Source: Altus Group

With more than 1,480 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area.  BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.

These results were previously released under the REALNET® Canada name, whose independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets is collected and compiled using a nationally consistent research process established in 1995. Going forward they will be released by Altus Group, powered by a proprietary data platform led by Altus Data Solutions Canada. This team is the formal unification of leading Canadian real estate data companies previously acquired by Altus Group, including REALNET® Canada.

A statistical backgrounder is available for viewing.

SOURCE Building Industry and Land Development Association

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